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7pm TV News SA

Witness at ICAC accused of lying

A witness at the corruption inquiry in New South Wales has been accused of 'lying his head off' about his knowledge of secret deals that would turn ordinary farms into vastly more valuable mining leases. The land in question is in the Bylong Valley in the state's upper Hunter region. The Sydney businessman Justin Lewis stood to make around $7 million from the purchase of a farm over which a mining lease was later granted. The ICAC is investigating allegations former Labor MP Eddie Obeid, his family and their associates stood to profit $100 million from inside knowledge about the mining leases.

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MARK COLVIN: A witness at the corruption inquiry in New South Wales has been accused of "lying his head off" about his knowledge of secret deals which would turn ordinary farms into vastly more valuable mining leases.

The land in question is in the Bylong Valley in the state's upper Hunter region.

The Sydney businessman Justin Lewis stood to make around $7-million from the purchase of a farm over which a mining lease was later granted.

The ICAC (Independent Commission Against Corruption) is investigating allegations that the former Labor MP Eddie Obeid, his family and their associates stood to profit by $100-million from inside knowledge about the mining leases.

Peter Lloyd reports.

PETER LLOYD: As a boy Justin Lewis dreamed of becoming a Formula One racing car driver. As an adult his sights were set on becoming a builder and property developer. By 26 he had a Harley-Davidson, BMW, a jet-ski and inner Sydney residence with three car garage, an $8,000 pool table.

He boasted about the material possessions for a newspaper feature called, My Material World.

JUSTIN LEWIS (voiceover): This house is a Venus flytrap for chicks. That's why I usually don't tell them where I live or too much about my financial situation when I first meet them. I'd hate for someone to be interested in me for my money.

I don't think I'm materialistic. It's just a fluke that the things I like are expensive.

PETER LLOYD: Now at 40, the grand ambition of becoming a property mogul has been exchanged for a more prosaic destiny. Justin Lewis runs the family's courier company.

It's a position that still affords him considerable luxuries, like a half million dollar Lamborghini Gallardo and three month overseas holiday this year.

He counts among his rich and influential friends the three sons of Labor powerbroker, Eddie Obeid.

At the ICAC hearing today, Mr Lewis revealed that it was the Obeid boys who convinced him to buy a farm called Coggan Creek for $3.5-million on the promise that the property would soon be fetching $14-million.

Justin Lewis struggled to explain his good fortune. His nearly three hours in the witness box had the public gallery in gales of laughter.

For commissioner David Ipp and counsel assisting, Geoffrey Watson SC, it was a morning of exasperation.

This is a recreation of an exchange between Geoffrey Watson and Justin Lewis.

GEOFFREY WATSON (voiceover): What did they say about coal?

JUSTIN LEWIS (voiceover): I don't recall.

GEOFFREY WATSON (voiceover): You knew there was coal under Coggan Creek, that's why you bought it?

JUSTIN LEWIS (voiceover): Not entirely.

GEOFFREY WATSON (voiceover): Did they say how they knew?

JUSTIN LEWIS (voiceover): No.

GEOFFREY WATSON (voiceover): Did you ask?

JUSTIN LEWIS (voiceover): No.

PETER LLOYD: Evidence has been given that the Obeids and two associates including Mr Lewis bought farms in the Bylong Valley knowing that Mr Obeid's colleague, the then mining minister Ian Macdonald, was going to issue coal mining leases over the properties.

Counsel assisting the inquiry, Geoffrey Watson SC, tried to get Justin Lewis to acknowledge that today.

GEOFFREY WATSON (voiceover): Did they say it would be a mining company?

GEOFFREY WATSON (voiceover): I put it to you that you are lying your head off.

PETER LLOYD: Justin Lewis was presented with a series of legal documents that show he intended to give 30 per cent of the windfall profit from the sale of Coggan Creek to the Obeids.

This was how he explained it.

JUSTIN LEWIS (voiceover): If they made me a whole bunch of money I'd be happy to give them an earn.

PETER LLOYD: Mr Lewis could not explain how he agreed to buy Coggan Creek on one day, and sell it the next, to a mining company called Monaro Mining. He said he didn't understand much of the legal paperwork he put his signature to.

JUSTIN LEWIS (voiceover): It is all a bit cloak and dagger. Most of it is legal gobbledegook. I read this stuff and it is all a bit boring for me.

PETER LLOYD: The community in the Bylong Valley has already heard enough after just one week of evidence at the ICAC inquiry.

Jodie Nancarrow runs the Bylong General Store. She is part of the Bylong Valley Protection Alliance that's been fighting the prospect of any sort of coal mining activity being permitted in the district.

JODIE NANCARROW: For a small community we've had to jump up and down and say this is not seemed right, I think dodgy is the word that you could use right from the start.

PETER LLOYD: The alliance wants the O'Farrell Government to suspend or cancel the mining exploration licences issued by the previous Labor government.